Grayscale CEO: Increased Interest from Real Heavy Hitters; Pension Funds & Endowments

The new CEO, Michael Sonnenshein, says Grayscale is “inherently increasing the scarcity of an already scarce asset.”


Grayscale Investments has accumulated more than 3% of Bitcoin’s circulating supply through its Grayscale Bitcoin Trust (GBTC), which holds 606.87k BTC worth $23.8 billion.

With a premium of nearly 25%, GBTC caters to accredited and institutional investors and hedged fund managers.

But now, the world’s largest crypto asset manager is expecting increased interest from the likes of pension funds and endowments, said the chief executive officer Michael Sonnenshein, who was named the new CEO, a successor to founder Barry Silbert on Thursday.

“We’ve started to see participation not just from the hedge fund segment, which we’ve long seen participation from, but now it’s recently from other institutions, pensions, and endowments.”

“The sizes of allocations they are making are growing rapidly as well.”

Michael Sonnenshein Grayscale CEO

“Here is your ticket to 6 figure bitcoin,” said one trader as pension funds and endowments are the real heavy hitters, adding Sovereign Wealth Funds will be next.

Grayscale currently manages $25 billion in assets, up from just $2 billion a year ago. The majority of the inflows came amidst the wild rally that pushed Bitcoin past $41,000 BTC 6.50% Bitcoin / USD BTCUSD $ 32,412.42
$2,106.816.50%
Volume 65.76 b Change $2,106.81 Open $32,412.42 Circulating 18.61 m Market Cap 603.12 b
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and Ethereum to $1,300 ETH 6.98% Ethereum / USD ETHUSD $ 1,226.40
$85.606.98%
Volume 36.96 b Change $85.60 Open $1,226.40 Circulating 114.36 m Market Cap 140.26 b
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near its ATH of $1,420.

Making it an even scarcer asset

From speculative retail traders, trend-following quant funds to the rich, institutional investors, and retail, everyone is behind this surge that led the total crypto market cap beyond $1 trillion for the first time.

“Bitcoin continues to defy all expectations and doubters,” said Antoni Trenchev, co-founder and managing partner of crypto lender Nexo. “It’s leaving all other assets trailing in its wake like it’s done year in, year out for the past decade.”

Amidst the strong bull rally, Grayscale is planning to double its headcount from the current 24 employees to continue its advertising and introduce half a dozen new products this year, said the new CEO who joined Grayscale in 2014 and most recently was its managing director.

The New York-based firm’s funds operate as trusts that hold the cryptos not redeemable by investors for six months. The holders of the crypto assets can sell their shares in the secondary market.

“So there is definitely an argument to be made about Grayscale and really any other vehicle that may be removing Bitcoin from circulation and putting it into a financial product inherently increasing the scarcity of an already scarce asset.”

“This is a verifiable scarce asset, and so when there are mechanisms that are removing them from circulation, that’s inherently making it an even scarcer asset.”

Michael Sonnenshein Grayscale CEO

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